United Capital Plc, an investment banking group in Africa, says its receipt of an ‘A-’ credit rating from top pan-African credit rating agency, Agusto & Co, will go a long way in boosting investor confidence. The company had received an upgrade from its ‘BBB+’ rating the previous year (2015).
Its Group Chief Executive Officer, Oluwatoyin Sanni, in a statement, said, “We are pleased to receive our new credit rating of ‘A-’ from Agusto & Co, which is a step higher than the ‘BBB+’ rating the previous year.
“It is a testament of not only our investment banking capabilities but of healthy assets quality, sound risk management and high corporate governance within our organisation. These are critical elements in building investor confidence domestically and internationally.”
United Capital prides itself on delivering superior investment banking solutions to corporate, government and individual clients, according to the statement, adding that the group structure operates four businesses – Investment Banking, Asset Management, Trusteeship and Securities Trading.
According to the report, United Capital’s asset quality is categorised as ‘good’ with 27 per cent of its assets invested in low-risk Federal Government of Nigeria instruments and 54 per cent held in investment grade quality short term and fixed instruments as at December 31, 2016.
The rating was further supported by the company’s capable and experienced management team, extensive network access, asset quality, profitability and good liquidity and funding profile, the report explained.
The report went on to support the rating with United Capital’s 2016 gross earnings of N9bn compared to N6.2bn in 2015.
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